BCBG Is Closing a Bunch of Stores

Bad news for BCBG fans: This week, the brand known for its wide range of party looks, announced that it would be shuttering several stores to focus on the digital retail landscape. It turns out, your online shopping habit is to blame.

“Like so many other great brands, BCBG has been negatively impacted by the growth in online sales and shifts in customer shopping patterns and, as a result, has too large a physical retail footprint,” the company said in a statement. “In order to remain viable, the company—like so many others in its industry—must realign its business to effectively compete in today’s shopping environment.”

This news comes on the heels of more hints at trouble in the land of BCBG. In 2016, the company announced large-scale layoffs at its global headquarters—including placing the company’s founder Max Azria on paid leave. While the company did not confirm how many stores it would be closing this year, it seems the impact on its current fleet of 570 retail spots will be considerable.

Considering the current retail crisis in the industry, this trend is certainly not unique to BCBG. Over the past year, American Apparel has been making major headlines with its financial woes, which recently announced it would be shuttering all of its U.S. stores this year (not to mention the accompanying layoffs of 2,400 employees).

But it’s not all bad news. For BCBG, taking action before getting too deep into bankruptcy territory à la American Apparel means that the brand has the opportunity to throw its resources into meeting shoppers online in a really cool way. Ultimately, there’s a reason why brick and mortar retail chains are getting hit so hard—we like shopping online. And with Instagram rolling out shoppable opportunities right on our newsfeed, our buying habits are only going to continue to shift. When you think about it that way, the future of shopping seems to look bright.